BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE, PILANI

Course number: MBA C423

Course Name: Business Policy & Strategic Management

Template
for
Company’s Strategic Analysis

Team Name:

Team Members:
Name Id. No.
1. Anandi Gupta
2. Rahul Rai
3. Umang Doshi

Industry selected: DTH (Direct to Home)

Company Selected:

Instructor In-charge: Prof Sudheer Thakur

Co-Instructor: Prof Anil K Bhatt

Strategic Management Schema

ENVIRONMENTAL SCAN
1) External Environment scan
PEST Analysis

Political

Factors Unfavorable Neutral Favorable

Political Parties √
Regulatory Role of √
Government
Rules for licensing √
Trade Restrictions √
And Tariffs
FDI cap √
Government √
Stability

(Here, Unfavorable-1 & Favorable-3)

Weighted Average = (2*1+4*3)/ 6 =2.33
Thus the overall effect of Political factors on this industry is Favorable.

Economic Factor

Factors Unfavorable Neutral Favorable

Currency Stability √

Gross Domestic Product √

Inflation Rate √

GDP based on PPP √

Interest Rate √

Budget Impact √

(Here, Unfavorable-1 & Favorable-3)

Weighted Average = (1*1+5*3)/ 6 = 2.67
Thus the overall effect of economic factors on this industry is Favorable.

Social
Factors Unfavorable Neutral Favorable

Consumer attitudes and opinions √

Brand, company, technology image √
Buying access and trends √
Age distribution and lifestyle trend √
Family form and Population shift √
Cultural implications of DTH √

(Here, Unfavorable-1 & Favorable-3)

Weighted Average = (1*2+5*3)/ 6 = 2.83
Thus the overall effect of Social factors on this industry is Favorable.

Technological

Factors Unfavorable Neutral Favorable

Technology √
Govt. course of action towards √
Technology
Technology Initiative √
Rate of Technological Change √
Industry R&D Spend √
Technology Push √
Productivity Improvements √

(Here, Unfavorable-1 & Favorable-3)

Weighted Average = (1*2+6*3)/ 7 = 2.86
Thus the overall effect of Social factors on this industry is Favorable.

2) Internal Environment scan

SWOT Analysis

Strength
• Market Leader
• Recognized Globally
 • Strong Brand Image
• Strong New Business Development team
• Strong Financials

Weakness
• Outsourcing of core system
• Network Coverage

Opportunities
• Low Broadband Penetration, Rural
• Telephony
• Bharti Infratel – Cutting Down cost in Rural area
• Current Tele-Density – 30.6 is still low among developing countries

Threats
• Falling ARPU
• Intense Competition & Shortage of bandwidth
• New Players coming in India
• Uncertain Economic Condition

Mention the below for the selected company under analysis

Point-of-analysis
CORE COMPETENCE
Description
Airtel core competencies are sales & promotions
and as of now Airtel is leading brand in mobile
services in India. Hence it can use its network for
DTH services also. Airtel is outsourcing there no
competence function and try to fully concentrate
on his core competency that is sales promotion.

DIRECTIONAL STRATEGY
Mention the following Description
VISION Vision 2010
By 2010 Airtel will be the most
admired brand in India:
– Loved by more customers
– Targeted by top talent
– Benchmarked by more businesses
Vision 2020
• To build India's finest business
conglomerate by 2020
• Supporting education of
underprivileged children through
Bharti Foundation
• Strategic Intent:
– To create a conglomerate of the future
 by bringing about “Big Transformations
through Brave Actions.”

CORE IDEOLOGY Core Values

• Empowering People - to do their best
• Being Flexible - to adapt to the
changing environment and evolving
customer needs
• Making it Happen - by striving to
change the status quo, innovate and
energize new ideas with a strong
passion and entrepreneurial spirit
• Openness and transparency - with
an innate desire to do good
• Creating Positive Impact – with a
desire to create a meaningful difference
in society.

MISSION “ We at Airtel always think in fresh

and innovative ways about the needs
of our customers and how we want
them to feel. We deliver what we
promise and go out of our way to
delight the customer with a little bit
more”

ADAPTIVE STRATEGY
Find out amongst the following three which strategy the company under
consideration is using and use the following given tools for analysis.
1) GROWTH 2) CONTRACTION 3) STATUS QUO

1) GROWTH STRATEGY:
Classify the Growth strategy as:
a. Intensive Growth b. Integrative Growth c. Diversification
Growth

a. INTENSIVE GROWTH
ANSOFF MATRIX
Existing products New Products

Existing Market penetration Product development

markets The dth services lies in this
block since dth services are
being offered in Indian
market by many companies
such as TATA Sky, Dish TV
etc.
 New Market Development Diversification
Markets

MARKET ENTRY STRATEGY

Mergers & Acquisitions
If the selected company gone under Mergers or Acquisitions in the said time period,
please mention the advantages & disadvantages derived by both the firms (1.
Company being bought, 2. Company buying other company).

COMPETITIVE STRATEGY
Analyze the company on the basis of Porter’s 3 generic strategies & Porter’s 5
forces as tabulated below
PORTER’S COST LEADERSHIP DIFFERENTIATION FOCUS
GENERIC STRATEGIES
&
FIVE FORCES

THREAT OF NEW ENTRANTS

BARGAINING POWER OF
SUPPLIERS

BARGAINING POWER OF
CUSTOMERS

THREAT OF SUBSTITUTE
PRODUCTS / SERVICES

JOCKEYING FOR POSITION

Identify the role of INFORMATION TECHNOLOGY played a role in deriving the

competitive advantage for the company under consideration.

Evaluate as per the points given below:

1. Transform value chain/ Products

2. Direction & pace of change

3. Changing industry structure

 4. Spawning new business

IMPLEMENTATION
1. Balanced Scorecard
Perspectives Questions Goals (can be Measurement
multiple for each
perspective)
How do customers see us?
Pricing Index
Customer
Customer Ranking Survey,
Customer Satisfaction Index,
Market Share
How do we look to
shareholders?
Financial
Return-on-Capital Employed,
Cash Flow,
Project Profitability,
Profit Forecast Reliability,
Sales Backlog.
What must we excel at?
Hours with Customers on New
Internal
Work,
Processes Tender Success Rate,
Rework,
Safety Incident Index,
Project Performance Index,
Project Closeout Cycle.
Can we continue to improve &
create value?
Innovation &
Percentage of Revenue from
Learning New Services,
Rate of Improvement Index,
Staff Attitude Survey,
Number of Employee
Suggestions, Revenue per
employee

2. Comment on the following aspects on the company under

consideration

a. Culture
b. Structure
c. Leadership
d. Appraisal (linking rewards to performance)